BARAKA Energy & Resources has withdrawn from permit area EP 128, but is still aiming to renew its licence over the neighbouring EP 127 permit, in the Northern Territory’s onshore Georgina basin.

Baraka had aimed to renew the expired permit after Statoil and PetroFrontier withdrew from it and three other NT permits in late 2014, citing disappointing drilling results.

A lack of indicated conventional targets within the permit area had made NT government requirements for increased expenditure over the permit area unsustainable, Baraka said, adding that it had not had sufficient time to consult with potential farm-in partners before making the decision.

Any company commitments could be better used elsewhere in 2016, Baraka said, in light of the current market conditions of the oil and gas industry.

“EP 128 was the most Northerly permit held by Baraka and – based on the basins known structure of dipping to the south east – the shallowest area was in EP128 and hence viewed as the least prospective,” Baraka said.

“Baraka is however pursuing renewal of EP127, and has lodged a revised work program with amended expenditures on 31 December 2015.”

Baraka would keep the market informed of the progress of EP127 renewal, it said.

Should it be successful in renewing the permit, Baraka would hold a 100 per cent stake in it, with both Statoil and PetroFrontier transferring their stakes to the company under a joint operating agreement.